The share and owners
2010 was a turbulent year for the NASDAQ OMX Stockholm, where the
large part of trading in Swedbank’s shares takes place. The A share had
a good turnover rate during the year, and interest from international
investors grew significantly.
In 2010 the OMX Stockholm 30 index rose by 21 per cent and OMX Nordic Banks by 23 per cent. Swedbank’s A share rose by 32 per cent and its preference share by 36 per cent during the year. At year-end 2010 Swedbank’s market capitalisation had increased to SEK 109bn (82). Swedbank was one of the most heavily traded companies on NASDAQ OMX Stockholm during the year, with a turnover rate for the A share of 172 per cent (445 per cent). The turnover rate for NASDAQ OMX Stockholm as a whole was 95 per cent (119 per cent). Since Sweden’s stock exchange monopoly was abolished in November 2007, a growing percentage of trading in the Swedbank share takes place outside NASDAQ OMX Stockholm. In 2010 27.8 per cent of trading turnover in the A share and 17.3 per cent of trading in the preference share took place outside the primary market, of which Boat, Chi-X, Bats Europe and Burgundy were among the marketplaces with the highest turnover. The total turnover in Swedbank’s A share was SEK 212bn, while turnover in the preference share was SEK 5.2bn in 2010.
Swedbank’s share capital as of 31 December 2010 amounted to SEK 24 351m, distributed among 952 323 439 A shares and 207 266 738 preference shares.
Ethical investors focus on various aspects of a company’s sustainability work, including how it handles environmental issues, human rights and risks. There are currently a number of mutual funds and stock indices for companies that meet certain sustainability criteria. Swedbank’s A share is listed, for example, on FTSE4Good, an index of ethically responsible and sustainable investments. In 2010 Swedbank received 68 points out of a possible 100 from the Dow Jones Sustainability Index; the industry average was 50.
According to Swedbank’s current dividend policy, the dividend shall correspond to around 40 per cent of after-tax profit, excluding one-off items. The size of the dividend is based
on the latest dividend and is determined with reference to expected profit trends, the capital considered necessary to develop operations and the market’s required return. All dividends are conditional on the approval of the Annual General Meeting, which requires that distributable funds are available. The Board of Directors has proposed a dividend for the financial year 2010 of SEK 2.10 (0) per A share and SEK 4.80 (0) per preference share. In early 2011 the Board of Directors changed its dividend policy to amount to 50 per cent of profit for the year. The policy was changed against the backdrop of Swedbank’s strong capitalisation, expectations of modest credit demand and a continued focus on capital efficiency.
The preference shares have preference to an annual, noncumulative dividend of up to SEK 4.80 per preference share. In the event that there remain funds to be distributed, A shares get a dividend up to the amount preference shares receive. Thereafter, any remaining dividend is divided equally between all shares irrespective of the type. Non-cumulative means that any dividend that is omitted in a particular year cannot be added to the dividend in subsequent years. Shareholders are free to request that their preference shares be converted to A shares in February and August of each year. All outstanding preference shares will automatically be converted to A shares in 2013. In all, 12 362 751 preference shares were converted to A shares in February 2010 and 7 105 were converted in August.
As of 31 December 2010 Swedbank had 333 145 shareholders (346 272), 91.5 per cent of whom had holdings of 1 000 shares or less. Just under 0.1 per cent of the shareholders owned slightly over 80 per cent of the company. Swedbank’s largest shareholder as of 31 December 2010 was an ownership group consisting of Folksam Försäkring, KPA and Förenade Liv. International ownership in Swedbank increased during the year and now accounts for 34.2 per cent (23.8), of which the US and the UK represent the largest interests at 11.9 and 9.8 per cent, respectively.
In its capacity as a financial services provider, Swedbank engages in securities operations, including trading in financial instruments on its own account. Here there is a need to acquire the bank’s own shares to facilitate operations. Accordingly, the 2010 AGM resolved that the bank, until the 2011 AGM, may acquire its own shares such that the total holding of such shares at any given time does not exceed 1 per cent of all shares in the bank and that this is done at a price corresponding to the market price. In order to effectively manage Swedbank’s capitalisation within the bank’s risk appetite and capitalisation target the Board has proposed that the AGM 2011 authorise the Board to decide to acquire the Bank’s own A and/or preference shares of up to 10 per cent of the total number of shares (including acquisitions of own shares through the securities operations).
During the year the Board of Directors resolved on a new performance- and share-based remuneration programme pending the approval of the 2011 AGM. If so, the programme will apply retroactively to 1 January 2010. See also page "Performance-based remuneration within Swedbank" and note G14.
Information for shareholders
Swedbank offers its annual report to all new shareholders and distributes it to those who chose to receive it. Interim reports are not printed, but are available at www.swedbank.se/ir together with other information released in connection with quarterly reports. The annual report can also be ordered from this site.